All You Need to Know about Off-plan Property Mortgage in Dubai
Dubai is the ultimate real estate paradise. Owning a property, especially an off-plan property here, is something that millions of people dream of. But due to the high demand and skyrocketing prices, many novice investors had to previously back out from realising this dream.
However, things are changing. With buyers now being able to purchase properties through mortgages, the real estate of Dubai has seen pathbreaking changes. It’s enabling investors who previously just wouldn’t have been able to afford entering the market to not only do so, but do so for high-end luxurious properties that are in a price bracket they never dreamt of.
In spite of its growing popularity, the topic of purchasing an off-plan property with a mortgage is one that most investors just don’t know all that much about. Therefore, we are presenting this comprehensive guide, which is designed to change that. We will run you through all the vital aspects you need to know about investing in off-plan properties using a mortgage right here in Dubai.
Overview
Dubai’s real estate market is as diverse as you can imagine. From different property unit types and sizes to varied financing methods, there are countless options for those who want to become homebuyers in this emirate.
One way of financing a property investment in Dubai is through an off-plan mortgage. Off-plan properties refer to property units that are in the construction or even planning stage. One of the main advantages of purchasing an off-plan property unit is that they are usually priced lower than completed ones, making them a popular option for buyers with an economical or tight budget.
Off-plan mortgages in Dubai were extremely limited until very recently, and they were also very hard to secure. But in July 2025, with the launch of a new product by a leading UAE bank, the scope of off-plan property mortgages in Dubai has significantly expanded, giving investors more financing flexibility than ever before.
What is an Off-plan Mortgage in Dubai?
Before we understand the process, let us get clarity about the term itself. In Dubai, an off-plan mortgage refers to a type of home loan that enables investors to finance the purchase of a property unit that is still in the planning or construction stage.
In stark contrast to traditional mortgages, which are usually offered for completed projects, off-plan mortgages are customised for investors who want to secure a property unit at a preliminary stage of development. To put it simply, this home loan empowers homebuyers to finance part of a property purchase before the project is even completed.
The bank or financial institutions release funds in stages, aligned with the construction progress of the project, ensuring the payment plan instalments are covered by the bank or the financial institution rather than the investor. This also makes sure the developers are complying with the completion of the project and safeguards your overall investment.
Off-plan Mortgage Rules in Dubai (2025)
A new mortgage product was introduced in July 2025 by one of the leading and reputable banks of the UAE, ensuring this financing option is much more easily available to investors in Dubai.
To help you get acquainted with the new home loan rules up and close, here is a breakdown of how it works under the new off-plan mortgage Dubai rules.
Project Completion Requirement
The concerned project in question must be at least 40% completed before the bank can approve the financing option.
Investor Contribution
The investor needs to pay at least 50% of the price of the property already. The rest of the 50% of the property price can then be financed through the mortgage.
Income Criteria
Investors must have an earned income from a salaried source or self-employment. Dividends or investment income alone will not suffice.
Tranche Release
As each construction tranche gets completed and the next instalment is due, the bank will subsequently release the corresponding funds directly to the builder or developer.
Pre-Approval
The pre-approval process for an off-plan mortgage is the same as for regular mortgages. It can be secured in advance and is valid for up to 90 days.
This newly defined structure helps in making off-plan property mortgage in Dubai a more pragmatic and realistic option for an eclectic range of buyers, particularly those who want to avoid paying 100% of the property cost during handover.
Eligibility for an Off-plan Mortgage in Dubai
The eligibility criteria for an off-plan mortgage in Dubai have always been stricter compared to their regular counterparts. However, even with the recent updates, the entire procedure still remains relatively hassle-free and straightforward, but is limited to specific top developers.
As a buyer, you need to ensure that the developer you are planning to buy the off-plan property from is on the approved list of developers against which a bank or financial institution is willing to lend. This will be followed by the bank assessing your income stability, credit history, and age, just as with a regular mortgage.
If the project meets the 40% completion requirement and you have a robust salary record or are self-employed with adequate verifiable income, then the chances of you securing a mortgage for an off-plan property unit in Dubai significantly becomes higher.
Interest Rates of Off-Plan Mortgages
The leading interest rate for off-plan mortgages in Dubai as of July 2025 is as follows.
- 4.99% fixed for 3 years without salary transfer
- 4.49% fixed for 3 years with salary transfer
Advantages of Off-plan Mortgages in Dubai
The popularity of off-plan property mortgages in Dubai stems from the numerous benefits they bring to the table. Let us take a look at some of the most notable ones among them.
Lower Initial Outlay
Off-plan property units are generally paid in full by the buyer during handover. An off-plan mortgage enables 50% of the property to be financed, minimising the initial outlay.
Longer Financing Timeline
Since an off-plan mortgage lets 50% of the property be paid for over a period of up to 25 years, it is significantly longer than the payment plans of the developer.
Avoid Financial Constraints
Investors who experience unexpected cash shortfalls during property purchases can use an off-plan mortgage to overcome issues with affording the property unit.
Improved Cash Flow Flexibility
Financing part of the purchase can help investors maintain liquidity for other expenses or investments, further allowing them to focus on their important aspects.
Disadvantages of Off-plan Mortgages in Dubai
With the good comes the bad. We can’t in good faith ignore a few of the disadvantages that off-plan mortgages bring. Let us learn about them.
Higher Overall Cost
In contrast to interest-free developer payment plans, mortgages incur interest charges, heightening the overall cost of ownership.
Interest Rate Considerations
Fixed rates (4.99% or 4.49%) are competitive but could be more than the usual mortgages for ready-made property units.
Structured Payment Releases
Funds are disbursed in tranches based on the progress of the construction, which needs coordination between the developer and the bank.
Limited Developer Availability
Only a select few projects and developers in Dubai are eligible for off-plan financing. This limits the options to choose from at times.
How to Apply for an Off-Plan Mortgage in Dubai?
If you have already scouted an off-plan property in Dubai that you are interested in buying, the first order of business is to secure an off-plan mortgage, is to contact a qualified mortgage advisor. They will help you in assessing your eligibility depending on your age, income, the developer’s approval status with participating banks, and the completion status of the project in question.
The entire process typically looks like this.
Contact a Mortgage Advisor
Reach out to a trusted and licensed mortgage advisor, as they can help you figure out whether the project in question qualifies for an off-plan mortgage and what documents you need to provide for the same.
Assess Developer and Project Eligibility
Next, you need to confirm that the off-plan project you have selected is at least 40% complete and that the developer is on the approved list of the bank you are procuring the loan from.
Secure Mortgage Pre-Approval
In the event the project is eligible, then the advisor will assist you in applying for pre-approval from a bank. This document is generally valid for up to 90 days and states your borrowing capacity.
Submit Financing Application
After the pre-approval step, your mortgage advisor will help you submit an official application depending on your payment history and remaining balance.
Bank Releases Funds in Tranches
After getting the approval, the bank will disburse the loan in multiple stages, aligned with the construction schedule of the developer and remaining payment milestones.
Alternative to Off-Plan Mortgages in Dubai
While off-plan property mortgages are an ideal option for prospective investors in Dubai, their strict criteria and more limited availability can sometimes make them difficult to procure. This is why we are informing you of some alternative financing strategies that could provide you with more flexibility.
Developer Payment Plans
Most of the top property developers in Dubai offer compartmentalised payment structures. This includes post-handover plans, where a major portion of the price of the property is paid after handover. These flexible payment plans empower investors to spread their payments across a longer period without depending on a mortgage during construction.
Mortgage at Handover
Another popular approach is to pay the initial instalments as per the construction-linked plan and then procure a traditional mortgage during handover of the completed project. At this stage, more and more banks will be willing to finance your investment, and standard mortgage terms will apply.
To Conclude
Off-plan property mortgages in Dubai were a restrictive and rare product until recently. However, with the advent of the new July 2025 off-plan mortgage product, investors can now have the chance to finance up to 50% of the property cost during construction, given the property unit is at least 40% complete and that the developer is on the approved list of the bank the investor is procuring the mortgage from.
We hope this guide has helped you figure out how off-plan property mortgages work in Dubai. Keep in mind the eligibility criteria, and note the advantages as well as the disadvantages, before you make your final choice, as this is a lifetime investment.